If the price elasticity of demand for Good A is -0.15 and the price increases from $4 to $6. Calculate the percentage change in the quantity demanded of Good A using mid-point method. Answer: The percentage change in the quantity demanded of Good A is __________ percent.

a)When John can sell totem poles for 1,800 each, he markets 60 annually. when the price falls to $600 each, he is willing to sell only 24 each year. What is his price elasticity of supply ?  b) government pays attention to the elasticity of demand when selecting foods and services upon which to levy excise taxes. Assume a $1.00 tax is levied on some good and 10,000 units are sold. What is the tax revenue collected ?

Someone tells you the "absolute value" of the cross price elasticity of two substitutes like Coke and Pepsi is 2.40. Based on this information, what percent change in the price of Coke will cause the quantity demanded of Pepsi to increase by 3%.

The demand curve for a good is horizontal when it is:*  a perfectly inelastic good.  a unitary elastic good.  a perfectly elastic good.  an inferior good. Which of the following factors would NOT affect the own price elasticity of a good?*  time  price of an input  available substitutes  expenditure share We would expect demand for jeans to be:*  more elastic than the demand for clothing.  less elastic than the demand for clothing.  the same as the demand for clothing.  neither more elastic, less elastic, nor the same elasticity as that of the demand for clothing.

am. 111.

The accompanying table lists the cross-price elasticities of demand for several goods, where the percent quantity change is measured for the first good of the pair, and the percent price change is measured for the second good.  ( please see image) a. Explain the sign of each of the cross-price elasticities. What does it imply about the relationship between the two goods in question? b. Compare the absolute values of the cross-price elasticities and explain their magnitudes. For example, why is the cross-price elasticity of McDonald’s burgers and Burger King burgers less than the cross-price elasticity of butter and margarine? c. Use the information in the table to calculate how a 10% increase in the price of Pepsi affects the quantity of Coke demanded. d. Use the information in the table to calculate how a 5% decrease in the price of gasoline affects the quantity of SUVs demanded.

Suppose that a large city has dozens of apartment complexes that are nearly identical in terms of size, age, and amenities. Assume the demand curve for an apartments at an individual complex is perfectly elastic. If the city places an excise tax on apartments, who will pay the tax? What will happen to the quantity demanded. Explain and show graphically. For graphical purposes, assume the supply of apartments is upward sloping.

If Starbucks’s data analytics department estimates the income elasticity of demand for its coffee to be 2.5, how will the prospect of an economic boom (expected to increase consumers’ incomes by 5 percent over the next year) impact the quantity of coffee Starbucks expects to sell?Instruction: Enter your response rounded to two decimal places. It will change by _____ percent.

INFO: Yesterday, the price of envelopes was $3 a box, and Julie was willing to buy 10 boxes. Today, the price has gone up to $3.75 a box, and Julie is now willing to buy 8 boxes. What is Julie’s elasticity of demand? _____ (Hint: only a number goes here) Is Julie's demand for envelopes elastic or inelastic? Explain your answer in a complete sentence(s) here:

Respond to the following in a minimum of 175 words: Compare and contrast the price elasticity of supply and price elasticity of demand. Define income elasticity and how it distinguishes normal and inferior goods. How do you think income elasticity affects a normal good versus an inferior good? Provide a real-world example.